The Banque de France has chosen to carry out its new digital currency experiment in the securities settlement sector on June 18, 2021. The latter has proved to be a success.
Digital currency experiment done as part of a larger project
The Banque de France “successfully” carried out a experimentation with the use of digital currency, on Friday, June 18, 2021, to buy listed securities. The monetary institution said in a press release that this operation is part of a larger program launched in March 2020.
The operation consisted of using central bank digital currency to simulate the settlement of listed securities and trigger their delivery to the European financial transaction management platform. In practice, “The Bank of France simulated the issuance of central bank digital currency tokens on a public blockchain, preserving the control and confidentiality of transactions, based on development and deployment ” a dedicated digital contract.
Central banks are working on a European cryptocurrency
“This experiment made it possible to demonstrate the possibilities of interactions between conventional infrastructures and distributed infrastructures and paves the way for other alliances with the aim of benefiting from the opportunities offered by financial assets in a blockchain environment ”, welcomed Nathalie Aufauvre, Director General of Financial Stability and Operations, quoted in the press release.
Several central banks have hypothesized that they could pay from digital currency in cross-border areas and why not set up a European digital currency. The European Central Bank must decide this summer whether or not to embark on the creation of a digital euro, one of the challenges of which will be respect data protection and the privacy of citizens.